Disney prides itself on being an inclusive company and has been quite outspoken about its commitment to diversity and inclusion across all its business sectors.
It has also created multiple inclusion initiatives and policies to prove its commitment and stated that it has been a leader in promoting LGBTQIA+ issues for over twenty years.
💰💸 Don’t miss the move: SIGN UP for TheStreet’s FREE Daily newsletter 💰💸
In its Diversity and Inclusion Commitment, Disney states that its “focus and intent encourages people from every nation, race/ethnicity, belief, gender, sexual identity, disability and culture to feel respected and valued for their unique contributions to our business.”
Related: Disney announces major updates that will make fans very happy
In December 2023, Disney announced it had earned a perfect score in the HRC’s 2023-2024 CEI, deeming the company’s workplace inclusion and support for the broader LGBTQIA+ community.
This is an initiative the company has participated in for years. However, its commitment to diversity would soon be tested after a series of events led Disney to think twice about its stance.
As a company, Disney has been committed to DEI efforts.
Gary Hershorn/Getty Images
Disney scales back on its DEI efforts and receives mixed reactions
In January, President Donald Trump signed an executive order to terminate Diversity, Equity, and Inclusion (DEI) mandates in the federal workforce, claiming they violated civil rights and discriminated against U.S. citizens.
DEI programs in the workplace were initially created to promote fair treatment for all people by eliminating discriminatory policies and practices and preventing others from arising in the future.
Related: Disney makes a drastic cost-cutting decision amid troubles
Even before President Trump’s executive order was signed, multiple major companies across all market sectors, such as Walmart, decided to end or scale back their DEI programs. After that, more joined in, including McDonald’s, Meta, Amazon, and Target.
The following month, Disney joined other companies in scaling back on DEI efforts by removing two key programs, including “Reimagine Tomorrow,” a digital platform to amplify underrepresented voices and champion accurate representation in media and entertainment, and “Disney Look,” an inclusive set of guidelines with appearance standards for Disney cast members that align with the company’s brand.
Disney investors reject an anti-DEI proposal
On Mar. 20, Disney (DIS) investors rejected a proposal from the National Center for Public Policy Research, a nonpartisan, free-market, independent conservative think tank in the U.S., which was presented by a representative from its Free Enterprise Project (FEP) at Disney’s annual shareholder meeting.
The proposal requested that Disney stop participating in the Human Rights Campaign’s annual Corporate Equality Index (CEI) sponsored by the Human Rights Campaign (HRC). The CEI is a national benchmark index used to measure and rank companies’ corporate policies based on how inclusive they are to the LGBTQ+ community in the workplace.
“When corporations take extreme positions, they destroy shareholder value by alienating large portions of their customers and investors. This proposal provides Disney with an opportunity to move back to neutral,” said the FEP in the proposal.
More Media and Entertainment News:
Disney announces a major streaming offer fans must get nowDisney makes major change streaming fans will notice right awayDisney World theme park rival invades a new land
However, according to the preliminary results, only 1% of the shareholders voted in favor of the proposal, with the remainder voting against it.
Disney’s Board said in its proxy statement that the proposal was unnecessary since it provides transparency on important matters to shareholders such as this one, and “do not believe the request would provide additional value to shareholders.”
Related: Veteran fund manager unveils eye-popping S&P 500 forecast
